Escalate case study two: sports club construction dispute (£450,000+)

Background

A sports club sold off part of its land to a developer in return for the construction of a new club house on the remaining club’s land.

Construction costs over-ran, the developer walked off-site and would not return until additional funds were provided by the sports club to support the club house build. This resulted in a ‘stand-off’ that then saw lawyers instructed from both sides to try and resolve.

The case got stuck in a 12 month plus legal process that didn’t progress, other than to highlight the original weaknesses in the contract drafting which meant both sides had some form of potential argument to keep the lawyers going ‘backwards and forwards’.

The case had gained over £50,000 in legal costs before it stalled due to the sports club running out of money to pursue further. Their incumbent lawyer (national firm) was not comfortable in offering a conditional agreement but certainly were not prepared to cover disbursements. It was also unlikely that the case would have been able to get insurance for the adverse costs (After The Event Insurance) below £100,000 which would have made it prohibitive.

How did Escalate help?

The sports club heard about Escalate through their local accountant and transferred the case to us. Within 6 weeks a heads of term agreement was reached.

Through Escalate we were able to demonstrate that the case was now funded and insured to high court meaning the developer needed to do a deal or risk a significant cash gamble under the court.

Why Escalate?

If you have a unresolved dispute, Escalate can help you to avoid wasting your time and money pursuing disputes with unsuccessful outcome.